SNP drops Penny for Scotland tax

THE link between earnings and pensions would be restored and fuel duty cut under Scottish National Party proposals unveiled yesterday.

John Swinney, the SNP leader, laid out seven key policy areas that will form the backbone of the general election campaign, ones which he said addressed the main concerns of the voters. A mix of populist issues such as fuel tax and key areas such as health and education have been drawn up in an attempt to make the SNP more appealing to voters and to convince them that the party could govern an independent Scotland.

However, there was no mention of tax or repetition of the controversial Penny for Scotland campaign - a rise of one penny on income tax to fund public service - which was blamed for losing the party votes at the Scottish Parliament elections last year.

It further fuelled speculation that the campaign had been shelved. The nationalists said that their principle of improving public service ahead of tax cuts still remained, but indicated that in an independent Scotland the costs could be offset by oil revenue without the need for tax rises.

In his first major speech since succeeding Alex Salmond as party leader, Mr Swinney said independence remained the "holy grail" for nationalists, but could only be achieved by proving to voters the strength of its policies, something it has struggled to do in the past.

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The seven key policy areas are health, education, pensions, poverty, jobs, fuel costs and crime. Rigid policies will be debated and formed over the next few months. Addressing party members in Edinburgh yesterday, Mr Swinney said: "I don't want us to hide behind the simplicity of demanding that only by spending more money can we deliver better policy.

"I want us to demonstrate the thinking and the imagination of our ideas will make a difference." The SNP will not shift from its traditional left of centre position, but Mr Swinney has made much of attracting the vote of "aspiring Scots".

He again underlined his more moderate approach and intention to attract a broader spectrum of voters traditionally put off by a solely nationalist agenda. He said: "We must translate our vision of a just, caring and prosperous Scotland into a tangible picture for everyone in Scotland."

Working documents for each policy area will go to the SNP national assembly next month for party members to decide the general political question of the policy areas, and work out how to put those arguments across clearly to the public. SNP front benchers will then hold subject forums before detailed policy initiatives are presented to the party's national council in March.